An insurance policy endorsement, or rider, offers a way to alter your existing policy without having to buy a new one. It can be used to remove or modify information within your standard policy or increase or restrict coverage. It overrides what is written in your standard policy.
Generally, an endorsement remains in effect as long as your standard insurance policy. You can renew it alongside your policy, too.
The most common uses of policy endorsements are the protection of valuable items or to add extra coverage for more comprehensive protection not offered under your existing policy.
Even though insurance policies differ between insurers, they generally offer specific, restricted coverage for your belongings, your home, and your vehicles.
For instance, Coverage C on your home insurance policy is for personal property such as your furniture, clothing, and other items. However, within each policy there are also specific limits on some items. These usually include expensive items such as jewelry, electronics, collectibles, and more.
How Endorsements Can Help
Special limits can be quite low (usually between $1,000 and $5,000) and only cover certain losses. As an example, your policy may not cover dropping a set of wedding rings down the drain, but it would cover the theft. However, you would only be compensated up to the special limit.
Clearly, if the wedding rings are worth more than your policy’s limit, this could lead to a large personal loss. Luckily, a scheduled personal property endorsement may provide more comprehensive coverage, including accidental loss, and the higher limit you need.
Endorsements are available for many items and many risks. For instance, you may want an endorsement for water backup coverage since it isn’t usually included in a standard homeowners renters or condo policy. Earthquake coverage is another common endorsement as it isn’t usually included in an off-the-shelf policy.
You may also want to purchase an endorsement for new car replacement or GAP coverage to protect you from loss on a leased or financed vehicle. Other endorsements include classic car coverage, rental car coverage, roadside assistance, towing, glass replacement, mechanical breakdown coverage, and more.
Endorsements are available to change or add to the existing terms or coverage of almost all insurance policies.
Benefits of Endorsements
The obvious benefit is better coverage. You can tailor your policy to your needs so you won’t face an unwelcome surprise should you ever need to file a claim. Most endorsements are usually reasonably-priced compared to standalone policies too.
In many cases, endorsements provide additional protections that your standard policy does not offer. A good example is accidental loss of personal property or enhanced coverage off-property. Some also offer low or no deductible should you ever need to file a claim, which can ease the financial burden of a loss.
Review Coverage Regularly
We strongly suggest that you review your insurance coverage regularly and we’re. happy to help. Our agents are insurance experts and can pinpoint gaps that can be easily eliminated through adjustments to your policies. While endorsements do increase premiums slightly, they can also protect you from major losses and save you money and headaches in the long run.